When Soylent was launched in 2013, its value proposition was quite shocking: the end of food as we knew it. It was presented as a protein shake designed to replace traditional meals, packed with all the calories and nutrients necessary for daily sustenance. Targeted primarily at tech workers and gamers who lacked the time to eat, each bottle contained only plant-based ingredients. With the buzz it generated, Soylent seemed poised for either remarkable success or spectacular failure. Fast forward eight years, and Soylent remains relevant, shedding some of its polarizing reputation. The company claims it is on track to achieve $100 million in sales this year, with products available in around 30,000 retail stores across the U.S. and a robust direct-to-consumer model.
CEO Demir Vangelov, who took over in early 2020, noted that the company has adapted many of its strategies to survive and thrive. One key change involves repositioning the brand from a strict meal replacement to better align with consumer needs and desires. While Soylent still appeals to its core audience of individuals “too busy to eat,” it has also reinvented itself as a nutritional option for maintaining healthy lifestyles. “We are not a medical nutrition brand,” Vangelov stated. “We’re not a ‘you go to the moon with Soylent and you don’t need anything else’ brand. We’re not a dieting brand. We’re really a lifestyle brand.”
The protein shake market is experiencing rapid growth, expanding at a rate of 14% to 15%. Although plant-based protein shakes currently hold only about 2% of the market share, this segment is witnessing significant growth. In May, Bloomberg reported that Soylent was exploring strategic options, including a potential sale, estimating the company could be valued at $225 million or more in any transaction. However, Vangelov expressed confidence in his ability to steer Soylent toward profitability, focusing on helping consumers achieve more balanced and nutritious diets while making sustainable and affordable food choices. “We are striving to provide one option for the food industry to feed the world,” he emphasized.
Initially, the concept of Soylent appeared unconventional, gaining notoriety after co-founder Rob Rhinehart chronicled his experience of consuming only Soylent for 30 days. Rhinehart’s unconventional views and apocalyptic visions of future food often became intertwined with the company’s corporate messaging, leading to the perception of Soylent as a tech-driven food enterprise. In 2017, Rhinehart stepped back from day-to-day operations, passing leadership to seasoned consumer packaged goods executive Bryan Crowley, followed by Vangelov’s ascent to CEO.
Upon taking the reins, Vangelov faced numerous challenges, as the company exhibited signs of distress with rumors of downsizing and declining retail sales. “In 2020, we redesigned just about everything around the company: our fulfillment, our warehousing, our manufacturing, our procurement, the way we do things, our team,” he explained. Acknowledging that the customer acquisition strategies were yielding insufficient returns, he redefined the approach to engage both loyal Soylent fans and new customers.
Vangelov also recognized that the product line was trying to cater to too many diverse needs, which diluted the brand’s focus. He implemented changes in messaging, formulation, distribution, and staffing to stabilize the company’s financial health and shift towards profitability. “Now we’re not on that treadmill where you constantly have to go and fundraise or get capital from investors,” Vangelov remarked, highlighting the shift towards reinvesting generated revenue for growth.
Some of this progress can be traced back to Crowley’s leadership, particularly the earnest retail rollout in 2018, with distribution agreements at major retailers like Kroger and Walmart. Vangelov emphasized the importance of creating an omnichannel presence, ensuring that consumers could purchase Soylent both in stores and online. This accessibility helps position Soylent as an option for a broader demographic, not merely for tech-savvy consumers.
Today, while many Soylent users still fit the profile of busy young adults, the typical consumer has shifted to include a significant number of young working women, such as nurses and students. In addition to those seeking meal replacements, some consumers choose Soylent for drinkable nutrition due to medical needs or for weight management purposes. Most, however, use Soylent to complement their diets, relying on it for nutritional support during busy times.
Vangelov noted that today’s consumers are more informed about their dietary needs, particularly regarding protein intake, and they increasingly prefer plant-based sources. This knowledge has allowed Soylent to adapt its offerings and messaging to better resonate with consumers. For instance, the company has launched products like the limited-edition fruity Soylent Green bar, humorously branded with the tagline “DOES NOT CONTAIN PEOPLE.”
Ultimately, Vangelov stressed the importance of addressing the pressing challenge of providing affordable and sustainable nutrition. “We as an industry need to do something different,” he concluded. “Our mission is to deliver all the calories and nutrition to those who need it. While not everyone will rely on Soylent all the time, we believe that plant-based foods and products like Soylent will play a significant role in the solution.”
In this evolving landscape, it is critical to understand the potential side effects of various ingredients, including whether calcium citrate has side effects, as consumers become more health-conscious and discerning about their nutritional choices.